Brazil said it will cut the overall amount of its spending freeze to 13.3 billion reais ($2.4 billion) this year to meet its fiscal goal as investors become increasingly worried over public expenditures.

Brazil's primary deficit, excluding interest payments, is now at 28.3 billion reais ($5.1 billion), within the country's fiscal rules. According to numbers announced by the Planning Ministry, the economic team remains close to its tolerance range of 28.8 billion reais.

The ministry said in a note to the report that the government will block an additional 2.1 billion reais at the same time as it unfreezes 3.8 reais. Estimates of extraordinary revenues fell.

President Luiz Inacio Lula da Silva's administration had tried to close its budget by 2024. It appears now that the year in deficit within tolerance will be ended after two freezes on the budget, including an initial 15 billion reais in July.

Investors also seem hard to believe that Finance Minister Fernando Haddad is trying to strengthen public accounts, with the left-wing Lula continuing to demand more spending.

“Our numbers are good ones, that’s the truth,” Haddad said to reporters after the event Friday night in Sao Paulo. “People expected a budget out of control, and that’s not what’s happening.”

More cause for investor alarm, the government announced extraordinary credits to help combat wildfires across the country early this week. That spending will circumvent fiscal rules because it won't count in the calculation of the primary deficit, but it is still part of Brazil's total net debt, which stands at some 62 per cent of GDP.

Brazil said it will cut the overall amount of its spending freeze to 13.3 billion reais ($2.4 billion) this year to meet its fiscal goal as investors become increasingly worried over public expenditures.

Brazil said it will cut the overall amount of its spending freeze to 13.3 billion reais ($2.4 billion) this year to meet its fiscal goal as investors become increasingly worried over public expenditures. Brazil's primary deficit, excluding interest payments, is now at 28.3 billion reais ($5.1 billion), within the country's fiscal rules. According to numbers announced by the Planning Ministry, the economic team remains close to its tolerance range of 28.8 billion reais. The ministry said in a note to the report that the government will block an additional 2.1 billion reais at the same time as it unfreezes 3.8 reais. Estimates of extraordinary revenues fell. President Luiz Inacio Lula da Silva's administration had tried to close its budget by 2024. It appears now that the year in deficit within tolerance will be ended after two freezes on the budget, including an initial 15 billion reais in July. Investors also seem hard to believe that Finance Minister Fernando Haddad is trying to strengthen public accounts, with the left-wing Lula continuing to demand more spending. “Our numbers are good ones, that’s the truth,” Haddad said to reporters after the event Friday night in Sao Paulo. “People expected a budget out of control, and that’s not what’s happening.” More cause for investor alarm, the government announced extraordinary credits to help combat wildfires across the country early this week. That spending will circumvent fiscal rules because it won't count in the calculation of the primary deficit, but it is still part of Brazil's total net debt, which stands at some 62 per cent of GDP.

Brazil reduces 2024 spending freeze in response to investor budget worries

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Brazil reduces 2024 spending freeze in response to investor budget worries